Sam Bankman-Fried
The writing was on the Wall
Sam Bankman-Fried - the writing was on the wall
FTX founder Sam Bankman-Fried was convicted last Thursday of stealing billions from the crypto-exchange platform he set up in 2019 from his customers. It has been heralded as one of the biggest financial frauds in US history.
The case against 31-year-old maths genius with his shaggy locks and boyish face was summoned by Damian Williams, the US attorney in Manhattan, as ‘This case has always been about lying, cheating, and stealing, and we have no patience for it’.
But anyone familiar with the lives of the wealthy - will have seen the writing on the wall. Sam was flying on private jets and hobnobbing with current and former heads of state. He lived in a mansion in the Bahamas and paid hundreds of millions of dollars in political donations.
His story is not unfamiliar. Jho Low the Malaysian fugitive, is wanted for a similar reason. He allegedly defrauded the 1 Malaysian Development Berhad (1MBD ) of $4.5 billion, which he paid into his account. Like Bankman-Fried, he cultivated connections with some of the world’s largest and most reputable sovereign wealth funds and high-ranking politicians.
Like Bankman-Fried, he liked to spend. He supported Aziz in establishing Red Granite Pictures, a Hollywood production company responsible for making the films ‘The Wolf of Wall Street.’
This film tracks the life of Jordan Belfort a stockbroker in New York City and founder of the firm Stratton Oakmont, which was engaged in rampant corruption and fraud on Wall Street, ultimately leading to his downfall and conviction.
On the launch of the film, Jho Low threw a $3 million party to which the real Jordan Belfort was invited. As he looked around at the opulence he remarked to his wife, ‘ This is a f**king scam, anybody who does this has stolen money. You wouldn’t spend money you worked for like that.’
Belfort’s remarks summarise the characteristic difference between Hard-Earned and Easy Money. Other characteristic differences are that Hard Earned Money is honest, passionate about its business and private. In contrast, Easy Money is dishonest, passionate about pleasing itself, loves luxury and leisure and is arrogant. It believes that it can lie its way out of any situation, so there is no need for privacy.
Easy Money is not limited to the stolen money. You can see similar characteristics in inherited wealth and in wealth through marriage.